Beijing four metros to attract 14.5 billion yuan investment worldwide

The site of Promotion of Key Projects of Urban Development. Liu Zhihua, Deputy Mayor of Beijing delivering a speech.

Beijing is to open the operation market of No.4, No.5, No.9 and No.10 subways that are being or to be constructed. The operation portion of the four metros will be available for bundled open bidding in order to attract operators worldwide. If this bidding operation is successful it will attract 14.5 billion yuan of non-governmental capitals or overseas capitals. These were learned from Promotion of Key Projects of Urban Development held in Swissotel Beijing on May 25.

Liu Zhi, deputy director-general of Development and Planning Committee of Beijing Municipal Government, said as 2008 Olympic Games is to be held in Beijing and Beijing master city plan summarized as Two Axes, Two Zones and Multiple Centers is implemented, Beijing plans to put 230 billion yuan into the construction of city infrastructure between 2004 and 2008. While improving the management level of city public undertakings the Beijing government is determined to break operation monopoly and encourage non-governmental and overseas capitals to participate in city public undertaking construction, in order to promote the reform of urban management system. From this year on Beijing will open this market in proper and gradual sequence and beginning in 2008 eventually open it all with the exception of those citywide managing projects that have been specifically stipulated.

Liu Zhi also said Beijing Infrastructure Investment Corporation is actively carrying out the job on diversifying investors for the No.4, No.5, No.9 and No.10 subways. "The operation portion of the four lines will be available for open bidding and will attract social investors to enter rail transport managing market on the basis of 7:3 government and non-government investment proportion. The operation rights and stock rights generated by government investment in managing urban facility construction will be sold or transferred to tap the idle assets. Part of the reclaimed capital will be used in the construction and operation of non-managing and quasi-managing infrastructure projects. State-owned enterprises in the infrastructure field will be transformed into stock entities and the managing mechanism will changed.

Zhou Zhengyu, deputy director of Communication Committee of Beijing Municipal Government, is surrounded by reporters

Liu Zhi said Beijing will have major moves to effectively promote the opening of infrastructure construction market. Firstly we will actively attract non-governmental investment to push forward the comprehensive marketization of new infrastructure projects including such new managing infrastructure projects as water supply, gas, heating power, sewage and trash treatment and charging highways. From this year on governmental investment will be reduced gradually. All the projects will be available for open bidding in a bid by means of BOT to attract 10-plus billion yuan of direct non-governmental investment.

All the non-governmental investment projects that conform to Beijing master urban planning, state industrial policy and environmental protection will be registered instead of being examined and approved. Some approval proceedings will be abolished. With the exception of those specially prescribed by the state all the investment fields will be open to non-governmental capitals. In addition Beijing Urban Infrastructure Construction and Managing Market Supervision and Control Measures will be enacted as soon so possible, so as to make up for the inadequacy of the infrastructure market supervision and control system construction. In addition to these there is abovementioned appropriate adjustment of products and service pricing etc.

Liu Zhi, deputy director-general of Development and Planning Committee of Beijing Municipal Government, says Beijing will gradually open infrastructure investment and construction market

"Normally as the market is opened the pricing and pricing system should also be determined by the market. However questions concerning pricing and pricing system are still under study". When discussing whether the subway managing market would stick to the current pricing standard once it is opened Zhou Zhengyu, deputy director of Communication Committee of Beijing Municipal Government, said as one of the moves to improve urban infrastructure construction market development the government will appropriately adjust product and service pricing after comprehensively considering price level and citizens' affordability. If the price could not be put to place in a short time correspondent investment compensation policy would be enacted to created necessary condition for marketized operation

The successful holding of several Beijing International High-tech Expo has made it an important platform for Beijing to promote its image, recommend investment development environment and attract investment. It receives general attention and expectation. Different from previous promotion meetings Gansu province promoted projects made their debut indicating that the promotion of key urban development projects will spread from Beijing to the whole nation.

By People's Daily Online